We quit searching high and low for a much-obsessed-over house buying guide. Because, unfortunately, one…

Four Ways to Finance Your Home Improvements Without Tapping into Your Savings Account
Increasing your home’s resale value is an expensive proposition – particularly if you’re still paying your house’s mortgage or college debt. That’s why many homeowners ask for a loan or tap into their credit card to finance their renovations. Unfortunately, relying on credit for your home renovations is always something of a gamble. So, if you want to reduce your risks of defaulting to the minimum, check the following financing methods and pick the one that best suits you.
Credit card
Some renovations – like adding a second roof or a pool – can run into tens of thousands of dollars. However, if you’re only changing your bathroom’s fixtures or painting a room, charging your upgrades on your credit card is an easy solution. Just make sure you don’t go overboard and spend more than you can pay in a short amount of time.
Personal loan
Asking for a loan is a more complicated, drawn-out process. But if you’re planning to do a big renovation, like building a new bathroom or upgrading your whole kitchen, you’ll need more liquidity than what your credit card can give. Although personal loans are more expensive than equity-based credit, their interest rates are still lower than using a credit card.
Home equity line of credit (HELOC)
Mortgaging your home’s equity can give you access to even more funds. However, both HELOCs and home equity loans demand a piece of your home’s equity. So, if you’re still paying your first mortgage, they might not be an ideal solution. However, since you can borrow multiple times from a HELOC over time, it’s a great financing source if you’re doing a big, drawn-out renovation like adding a second floor to your house.
Cash-out refinance
If you have a mortgage and need cash for your repairs, a cash-out refinance is the perfect solution. Unlike a mortgage renegotiation, a cash-out refinance replaces your mortgage with a home loan with a higher amount of what you currently owe for your house. That way, the difference in money goes to you in cash so you can use it to finance your upgrades and repairs.
Regardless of which financing source you choose, it’s important that you stick to your budget at all times. Remember that credit is a two-edged sword which is why you don’t want to go overboard with borrowed money. So, plan carefully, don’t ask for more than one loan at a time, go for the upgrades that give you the best return on your investment, and you’ll profit big time once you sell your house!